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Maryland PSC Staff Petitions Commission To Initiate Rulemaking To Address Supplier Green Products Sold To Residential Customers Under New SB 1 Law
“The Staff of the Public Service Commission of Maryland (“Staff”) hereby respectfully requests that the Public Service Commission (“Commission” or “PSC”) initiate a rulemaking for proposed revisions to the Code of Maryland Regulations (“COMAR”) 20.53 and 20.61.04.01 to address green product offerings by retail choice electricity suppliers to residential customers, per Chapter 537 of the 2024 Laws of Maryland (“Senate Bill 1”).”
“Section 7-707(g) of Senate Bill 1, which applies to residential retail customers, specifically states that the Commission must adopt regulations that require suppliers who offer a green product to include a specific disclosure in the marketing materials. According to the new statutory language, the disclosure must also explain exactly what the customer will actually be paying for when the customer purchases green power from the electricity supplier; how the electricity the customer purchased is generated; how the green power will benefit the environment; the percentage of electricity that would be provided by the electricity supplier that is eligible for inclusion in meeting the renewable energy portfolio standard; and the state in which the electricity was generated. Additionally, the existing consumer protection regulations in COMAR 20.61.04.01 will likely need revision to conform with the more stringent requirements of Senate Bill 1.”
Staff’s petition asks the PSC to open a rulemaking for new regulations at 20.53 that addresses competitive electricity marketing of green products to residential customers. Staff notes that the current consumer protection rules at COMAR 20.61.04.01, governing supplier obligations related to the supplier marketing of renewable energy, will likely need revision considering passage of SB 1.
Staff’s petition seeks a formal proceeding be initiated so that Staff may engage industry stakeholders input prior to drafting and proposing any green product regulations.
A rulemaking number has not yet been assigned in response to Staff’s request.
In discussing new requirements under SB 1 the Staff petition specifically cites Section 7-707(g) of SB 1 that addresses additional disclosures required for residential green power offers.
As reported previously, other new requirements under SB 1 related to green power offers from retail suppliers, include the establishment of a green power rate by the PSC for retail suppliers which suppliers may not exceed -unless PSC approves a supplier’s alternative rate, are contained in other sections of SB 1 that Staff did not cite in its petition. For example, Section 7-707(g) of SB 1 specifically directs the PSC to adopt regulations for “plain language” disclosures that retail suppliers are required to provide for residential green power products.
SB1 provides that such disclosures shall explain:
what the customer will be paying for when the customer purchases green power from the electricity supplier;
- how the electricity the customer purchased is generated;
- how the green power will benefit the environment;
- the percentage of electricity that would be provided by the electricity supplier that is eligible for inclusion in meeting the renewable energy portfolio standard; and
- the state in which the electricity was generated.
Staff Petition (07/11/2024) ML# 310784
